Markets: Microeconomics is primarily concerned with the decisions that are taken on a 'small' scale (relative to national and international decisions) by households (consumers, workers etc) and firms (businesses). Often these decisions involve the allocation of scarce resources. Markets are a way of bringing together (though often not in a physical sense) consumers and producers so the forces of supply and demand can interact.
Demand:
Demand is derived from consumers wants or needs for goods and services. Essentially, in a market economy, if someone demands a product and has the ability to pay for it, then a producer will put together the necessary resources to make the product and satisfy demand. When following the notes on demand pay particular attention to the differences between 'Demand' and 'Quantity Demanded', also 'changes in demand' and 'changes in quantity demanded'.
Again, with market supply, be careful in your use of the terms 'Supply', 'Quantity Supplied', 'increase/decrease in supply' & increase/decrease in quantity supplied.
Microeconomics is primarily concerned with the decisions that are taken on a 'small' scale (relative to national and international decisions) by households (consumers, workers etc) and firms (businesses). Often these decisions involve the allocation of scarce resources. Markets are a way of bringing together (though often not in a physical sense) consumers and producers so the forces of supply and demand can interact.
Demand:Demand is derived from consumers wants or needs for goods and services. Essentially, in a market economy, if someone demands a product and has the ability to pay for it, then a producer will put together the necessary resources to make the product and satisfy demand. When following the notes on demand pay particular attention to the differences between 'Demand' and 'Quantity Demanded', also 'changes in demand' and 'changes in quantity demanded'.
Supply & Equilibrium:
Again, with market supply, be careful in your use of the terms 'Supply', 'Quantity Supplied', 'increase/decrease in supply' & increase/decrease in quantity supplied.
Test your understanding:
Interactive exercise 1
Interactive exercise 2
Below are two mark schemes to two introductory data response questions which you should have the hard copy for.